India expects USD 200 bn in AI-driven investments over the next two years, with USD 90 bn already pledged, IT Minister Ashwini Vaishnaw announced at the India AI Impact Summit in New Delhi, according to a statement. The five-day AI summit will run through Friday.

The government is deploying a five-layer stack — from infrastructure to models — to implement AI at population scale. Compute capacity will expand rapidly, with 20k GPUs added to the existing 38k in the coming days. “Investment is coming in all five layers,” Vaishnaw said, citing strong interest from venture capital and big tech players.

Out take: India is positioning itself as an AI leader and rule-influencer for the Global South. The country seeks to leverage its vast experience in IT and digital technologies to secure a significant share of global AI investments. India’s existing infrastructure, strategic partnerships, and technical expertise present a wide array of investment windows for Gulf investors across all five layers of the AI stack. Furthermore, for Gulf investors, India’s massive internet market offers a potential market access comparable to the scale of crude oil trade.

Investments

#1- Adani leads the call: Adani Enterprises plans to invest USD 100 bn by 2035 to build renewable-powered AI data centers, expanding capacity from 2 GW to 5 GW, according to a statement. The investment could catalyze an additional USD 150 bn in server manufacturing and other AI-related industries over the next decade.

These initiatives will be facilitated by Adani’s existing partnerships with Google and Microsoft. Adani is anchoring this expansion on the 30 GW Khavda project, the world’s largest renewable energy plant.

#2- Microsoft is on track to invest USD 50 bn by the end of the decade to expand AI access across countries in the Global South, the firm announced at the summit, building on its USD 17.5 bn AI investment pledge for India last year.

Data centers

#1- AMD 🤝Tata: US-based semiconductor firm Advanced Micro Devices (AMD) is partnering with India’s largest IT services firm Tata Consultancy Services (TCS) to deploy its latest AI data center technology in India, according to a statement. The partnership aligns with TCS’s plan to enter the data center business, targeting up to 1.2 GW of capacity.

Ramping up competition with rival American chipmaker Nvidia, AMD will offer its Helios data center blueprint and work with TCS to support up to 200 MW of AI infrastructure.

#2- Nvidia 🤝Yotta: Indian data center operator Yotta will invest more than USD 2 bn to build one of Asia’s largest AI computing hubs using Nvidia’s latest Blackwell Ultra chips, according to a press release. The project includes a four-year engagement worth over USD 1 bn, under which Nvidia will establish one of its AI training clouds within Yotta’s infrastructure.

Semiconductors

Meanwhile, another US chipmaker Micron Technology will begin commercial production at its India facility by the end of February 2026, Economic Times reports, citing India’s Electronics and IT Ministry. The project is part of the national government incentive program designed to build domestic chip assembly and packaging capacity. Micron’s rollout marks one of the first large-scale facilities under the program to move from approval to commercial production.

AI regulations

Tightening the screws: Amid all the buzz about investments and partnerships, the Indian government moves toward a mandatory regulatory framework for AI-generated content, shifting from best practices to ‘non-negotiable’ technical requirements, DD News reports. The government is developing stringent rules that require watermarking and clear labeling for all synthetic media or AI-generated content.

India is coordinating these technical and regulatory issues with 30 countries to create a cross-border compliance standard. Vaishnaw warned that misinformation, disinformation, and deepfakes are eroding trust across society, demanding accountability from platforms, model developers, and creators.

Ministerial speak: Vaishnaw has warned YouTube, Meta, X, and Netflix that they must operate within India’s constitutional framework as New Delhi’s stance on digital governance toughens. He said multinational platforms must understand local cultural and lawful contexts.

His remarks come as India tightens content-takedown rules, shortening the deadline for removing unlawful material to three hours from 36 hours, raising pressure on social media giants to comply.

Tags: